The bus industry in Wales is set to receive a £48m investment to help it recover from the pandemic and cope with the current financial challenges, the Welsh government has announced.

The Bus Emergency package will provide ‘gap funding’ until the end of the financial year for bus operators to maintain the bus services and routes, in return for greater public control over Welsh bus services.

Deputy minister for Climate Change, with a responsibility for transport, Lee Waters said: ‘The bus industry is emerging from some of its toughest times, and we need to continue to provide support to help the industry recover and secure a healthy future.

‘During the pandemic passenger numbers fell by around 90% and have still only returned to between 50% and 70% of pre-COVID levels, leaving operators struggling with reduced revenue and contending with the latest challenges of rising fuel and operating costs.’

Mr Waters emphasised that this was just a short-term fix and said that a review of the existing Bus Services Support Grant (BSSG) scheme would look at its longer-term sustainability.

‘The funding I’ve announced today will provide a short-term solution to help the industry to begin to recover from the challenges it has and continues to face whilst we develop a longer-term solution to tackle the gradual decline in passengers over the years,’ he commented.

‘In March I set out our plans to bring forward legislation to change the way bus services are delivered across Wales. Throughout this process we will be working closely with local government, the bus industry and passengers, to design a system that is “easy to use, easy to access and well connected” providing people a “real sustainable transport alternative” to the private car.

‘We will provide an update on how these plans are progressing later this year.’